Laidlaw & Co. Regulatory Review and Investor Concerns

Laidlaw & Company: Regulatory History, Sanctions, and Investor Concerns

Laidlaw & Company (UK) Ltd., (CRD #119037) a New York–based brokerage firm, has a long history of regulatory scrutiny involving supervisory failures, net capital violations, market-manipulation red flags, and most recently, alleged churning and Regulation Best Interest violations. For investors who suffered losses while working with Laidlaw or its registered representatives, these regulatory actions may provide important context for potential claims.

The White Law Group continues to investigate securities fraud claims involving Laidlaw & Company and its financial professionals.

Latest Regulatory Action: Net Capital & Supervisory Failures (2022–2023)

According to FINRA, Laidlaw engaged in extensive violations related to net capital and financial reporting requirements:

Net Capital Violations (108 Days Below Minimum)

From September 2022 through March 2023, Laidlaw allegedly conducted a securities business while failing to maintain the required minimum net capital on at least 108 days.

The firm also reportedly filed two inaccurate notices of net capital deficiency during this period.

Supervisory Failures (2022–2023)

FINRA further found that from September 2022 through June 2023, the firm failed to establish, maintain, and enforce a supervisory system—including written supervisory procedures (WSPs)—sufficient to ensure compliance with net capital and financial reporting obligations.

Contingency Offering Escrow Violation (2020–2021)

Between November 2020 and January 2021, Laidlaw allegedly violated:

• Exchange Act § 15(c)(2)

• Exchange Act Rule 15c2-4

• FINRA Rule 2010

by failing to establish an independent escrow account for a contingency offering involving an affiliated issuer.

For these combined violations, Laidlaw was censured and fined $200,000.

November 2023 – SEC Charges: Alleged Churning & Reg BI Violations

On November 20, 2023, the SEC announced a settlement with Laidlaw and two of its registered representatives regarding allegations of excessive trading in customer accounts.

Key Findings:

• The SEC alleged that the reps recommended an investment strategy from July 2020 through October 2021 that resulted in excessive, unsuitable trading.

• The strategy reportedly prioritized commission generation over client returns.

• The reps allegedly failed to meet Regulation Best Interest (Reg BI) care obligations.

Penalties:

• Laidlaw and the representatives reportedly agreed to pay more than $1 million in penalties, disgorgement, and interest.

The SEC emphasized that a customer’s willingness to take on risk does not relieve brokers of their duty to ensure that trading recommendations are in the client’s best interest.

Historical Regulatory Issues at Laidlaw & Company

Net Capital, Books & Records Failures (2018–2022)

FINRA previously found that Laidlaw:

• Operated with net capital deficiencies during multiple periods between 2018 and 2022

• Filed 24 inaccurate FOCUS reports

• Maintained inaccurate books and records related to net capital

The firm was censured and fined $200,000 for these failures (2023 cycle exam).

Market Manipulation Red Flags (2015)

In June 2021, FINRA fined Laidlaw $1.5 million for supervisory failures related to potential market manipulation, including:

• Failure to detect red flags of “pump-and-dump” style activity

• Failure to enforce supervisory procedures

• Failure to preserve business-related text messages

A senior representative was suspended and fined.

Laidlaw & Company Brokers with Misconduct, Bars

Laidlaw’s regulatory history includes a number of financial professionals who have been the subject of customer disputes or disciplinary actions.

• Nathaniel Royce “Nate” Clay (CRD# 4525541)
  Barred by the SEC in January 2023 for recommending excessive and unsuitable in-and-out trades that generated large commissions while causing significant client losses.

• James William “Jim” Flower (CRD# 2817701)
  Permanently barred by FINRA in April 2020 for churning customer accounts, mismarking trades, and generating more than $210,000 in commissions while clients suffered losses.

• Bryan Mazliach (CRD# 5518438)
  Permanently barred by FINRA in January 2021 after findings that he engaged in excessive and unauthorized trading, leading to over $170,000 in customer losses and more than $187,000 in commissions.

• Paul Joseph Prestia (CRD# 4477149)
  Barred by FINRA in April 2018 for failing to provide documents and information during an investigation, with prior disclosures including substantial tax liens.

What Investors Should Know

Firms like Laidlaw that repeatedly face regulatory actions may expose clients to higher risks of:

• Unsuitable investment recommendations

• Churning or excessive trading

• Inadequate supervision of brokers

• Misrepresentations or omissions

• Improper handling of investor funds

If your Laidlaw advisor recommended unsuitable investments or excessively traded your account, you may be able to file a FINRA arbitration claim for recovery.

Recovering Losses: FINRA Arbitration

Brokerage firms can be held liable for failing to supervise their financial advisors. Through FINRA arbitration, investors may be able to recover losses related to:

• Churning/excessive trading

• Unsuitable recommendations

• Breach of fiduciary duty

• Misrepresentations or omissions

• Failure to supervise

Most cases are handled on a contingent-fee basis.

Free Consultation with a Securities Attorney

If you invested with Laidlaw & Company and suffered losses, The White Law Group may be able to help.
Call 1-888-637-5510 for a free consultation, or visit whitesecuritieslaw.com.

FAQs About Laidlaw & Company

1. What were the main violations in Laidlaw’s most recent regulatory action?

FINRA found that Laidlaw operated below required net capital levels for at least 108 days, filed inaccurate deficiency notices, and failed to maintain adequate supervisory systems—all resulting in a $200,000 fine and censure.

2. What were the SEC’s 2023 allegations regarding Laidlaw’s brokers?

The SEC alleged that two Laidlaw representatives engaged in excessive trading that violated Regulation Best Interest. Laidlaw and the reps paid more than $1 million to settle the charges.

3. Can investors recover losses caused by Laidlaw or its brokers?

Yes. Investors may be able to recover losses through FINRA arbitration if their advisor engaged in excessive trading, unsuitable recommendations, misrepresentations, or other misconduct. The White Law Group can review your case at no cost.